Not upheld: Account closure without notice complaint against Santander UK Plc

Decision detail

Summary

Mr A deposited £10,000 in cash into a Santander account but the bank discovered a fraud marker and closed the account, requesting proof of the funds' source. Mr A claimed the money came from a savings club where members contribute £1,000 monthly in cash, but could not provide bank statements showing corresponding withdrawals or satisfactory corroboration from other members. The ombudsman upheld Santander's actions as compliant with financial crime prevention obligations and found Mr A had not demonstrated entitlement to the funds, therefore rejecting the complaint.

The Ombudsman's reasoning

Santander is subject to legal and regulatory obligations to combat financial crime, which requires monitoring transactions and understanding the source of funds. Cash deposits cannot be traced to their origin through the payment method alone, so requesting further information was appropriate. Mr A's explanation about a savings club was undermined by the lack of corresponding bank statements showing outward cash withdrawals, the deliberate avoidance of bank transfers to prevent account closure, the inability of other participants to provide corroborating information due to privacy concerns, and the existence of a fraud marker against Mr A. The evidence provided was insufficient to demonstrate Mr A was entitled to the funds.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website